International Business Expansion: A Case Study of Flight Centre Travel Group

This case study examines the international expansion strategy of Flight Centre Travel Group, a leading travel agency in Australia. It analyzes the company's competitive strategy, organizational structure, entry strategies, operational control, human resource management, and key challenges in international markets. The study also provides recommendations for improvement, highlighting the importance of understanding cultural nuances, managing security risks, and adapting to local regulations.

International
Across Border

Table of contents
• Introduction
• Overview of the company and current operating position
• Review of company’s international competitive strategy
• Existing organizational design structure and control issues
• Entry strategies used to enter other regions/countries
• Operational control, production and distribution/supply
chain management
• Management of Human Resources across borders
• Identify key Issues or opportunities for management
• Recommendations to management for improvement
• Conclusion
• References

Introduction
• The global markets are a great way to
create a brand image and higher
profits.
• The economy gets a lot of profits
after the expansion of new firms due
to which many countries are opening
their doors for the business activities.
• There are various theories that are
utilised by the companies at the time
of expanding their business.

Overview of the company and
current operating position
• Flight Centre Travel Group
(FCTG) is termed as the chief
travel outlet in Australia
• The company has been listed in
the Australian stock exchange
• The net revenue of this company
was A$2.36 billion in the year
2015

Review of company’s international
competitive strategy
• Flight Centre Travel Group can be
said as a quality business that offers a
lot of profit to look forward
• Flight Centre Travel Group has robust
share in market and the power
• Flight Centre Travel Group develops
the deep value by carefully
understanding their customers can get
all the products at cheaper rates

Existing organizational design
structure and control issues
• The company has been highlighting
the vitality of information system of
small groups is understood in the
organisational structure
• The body of management at Flight
Centre Travel Group has a chief
accountability for developing and
then further maintaining the
organisational features

Entry strategies used to enter
other regions/countries
• Partnership: The company has
been finding out about the
different areas where it can
expand its business with the
potential partners for analysing the
new market efficiently
• Franchising: Franchising can also
be said as one of the most suitable
and easiest way to enter into a
new market

Operational control, production and
distribution/supply chain management
• Transportation can be said as a hinge
around which the economic activities
all over the lobe revolve
• The segments in which the company
operates incorporate of Australia, US,
UAE and other countries
• The corporate business of the
company includes many of the travel
brands such as Travel Money,
Campus Travel and the 4th Dimension

Management of Human
Resources across borders
• Flight Centre Travel Group has
owned expert teams all over the
world who regulate the activities
of the business and look after the
concerns of their employees
• The company has also been
developing many types of training
activities for their employees all
over the world such as e learning
and different training sessions

Identify key Issues or
opportunities for management
• Bribery and Corruption
• Management of security
• Organisational issues
• Competition

Recommendations to management
for improvement
• Before stepping into a new country
it is very much crucial for them to
determine in what ways the country
can influence the operations and
profits of the company.
• The company also needs to develop
a top-down annual budget and also
develop a perilous plan along with
the dates of its commitment

Conclusion
• In the research above the overview
of company has been provided
covering its organisational
structure
• The companies need to develop
their business activities after
deeply analysing the profits in new
market
• All the barriers can be eradicated
by adopting appropriate theories.

References
• Burke, R., 2013. Project management: planning
and control techniques. New Jersey, USA.
• Jackson, S.C., Torres, L.E. and Moreno, J.F.,
2015. The Cross-Border Forum: Learning about
International Business through Experience.
In The Palgrave Handbook of Experiential
Learning in International Business (pp. 730-
742). Palgrave Macmillan, London.
• Montinari, L. and Stracca, L., 2016. Trade,
finance or policies: What drives the cross-
border spill-over of business cycles?. Journal
of Macroeconomics, 49, pp.131-148.